Floral Flavors Market - Forecast(2024 - 2030)

Floral Flavors Market Overview

Floral Flavors Market size is estimated to reach $521.6 million by 2027, growing at a CAGR of 8.9% during the forecast period 2022-2027. Floral flavoring can be delineated as food additives taken into account to extend the taste, flavor, and aroma of food and beverages. These botanical flavors are produced from spices, plant-based ingredients, flowers, and several herbs. Jasmine, chrysanthemum, orange blossom, lavender, elderflower, and hibiscus are the most commonly used flowers to produce such flavors. Floral flavoring plays a significant role in botanical mixes, craft beers, food items (blueberry chocolate bar, hibiscus lemon bar, and sweets), and ready-to-drink beverages such as elderflower lemonade protein drinks. The floral flavorings extend tons of health benefits over artificial flavorings such as treating bloating, curing bone abnormalities such as arthritis, helping with urinary issues, preventing cognitive disorders such as insomnia, and purifying blood. Besides health benefits, people are making more demand for natural and clean label goods as several studies have found that artificial flavorings like pyridine and ethyl acrylate are carcinogenic in nature. Growing demand for food and beverages with natural flavorings, rising disposable incomes, augmenting prevalence of chronic health disorders, changing tastes and preferences with rapid urbanization are factors set to drive the growth of the Floral Flavors Market for the period 2022-2027.

Report Coverage

The report: “Floral Flavors Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Floral Flavors Market.

Key Takeaways

• Geographically, the North America Floral Flavors Market accounted for the highest revenue share in 2021. The growth is owing to heavy demand for floral flavored RTD beverages and convenience foods, high health consciousness among people, and better disposable incomes owing to the prosperous nature of the economy.
• State-of-the-art marketing strategies are undertaken by market players, growing demand for lavender lattes and chamomile tea as incidences of cognitive disorders are increasing, growing usage of edible flowers as a substitute for sugar, rising demand for natural flavoring and sweeteners in food and beverages owing to health concerns are said to be preeminent driver driving the growth of Floral Flavors Market. Diminished production and rising inflation are said to reduce market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Floral Flavors Market report. 

Floral Flavors Market Segment Analysis-By Flavor Type

The Floral Flavors Market based on the flavor type can be further segmented into hibiscus, jasmine, rose, orange blossom, lavender, elderflower, and others. The jasmine, hibiscus, and elderflower segment held the largest share in 2021. These three categories of floral flavors are used extensively throughout the globe. Lavender organic whole milk yogurt, hibiscus sorbet, and milk chocolate with elderberry is some of the products that have made their existence known in recent years. Therefore, extensive usage in manufacturing several food and beverages owing to their anti-inflammatory and antiseptic nature has aided the demand. Furthermore, lavender and hibiscus are estimated to be the fastest-growing segment with a CAGR of 10.2% over the forecast period 2022-2027. This growth is owing to appealing aroma and taste along with health benefits such as skin blemishes reduction, curing insomnia, depression, and controlling blood sugar levels. Moreover, hibiscus tea is known as home to antioxidants like beta-carotene which prevent free radical’s attacks.

Floral Flavors Market Segment Analysis-By Application

The Floral Flavors Market based on the application can be further segmented into beverages, convenience food items, dairy products, bakery and confectionery products, and Others. The Convenience food items and beverages segment held the largest share in 2021. The growth is owing to expanding trend of replacing artificial flavorings like ethyl acrylate, styrene, benzophenone, and others with natural floral flavors as artificial sweeteners and flavorings are believed to possess carcinogenic properties that deteriorate the health of individuals over time. With time the overall demand for food and beverages with exotic flavors has grown unprecedently. Nevertheless, the food and beverages along with the confectionery segment are estimated to be the fastest-growing with a CAGR of 9.7% over the forecast period 2022-2027. Besides convenience foods and beverages, floral flavors play a vital role in confectionery items as a sweetener or flavoring agent. Therefore, the growing demand for confectionery has aided the aforementioned market.

Floral Flavors Market Segment Analysis-By Geography

The Floral Flavors Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 40% of the overall market in 2021. The growth in this segment is owing to the factors such as heavy demand for floral flavored ready to drink beverages and convenience foods, high disposable incomes allowing people to make such purchases at the drop of a hat, high health consciousness among residents because of quality lifestyles, and full-fledged retail infrastructure. However, Asia-pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to expanding consumer base of floral extract tea, the growing popularity of squash drinks like Rooh Afza in South East Asian countries, rapid urbanization, and bettering infrastructure, growing GDP per capita incomes, widescale manufacturing of botanical drinks because of ease of doing business.

Floral Flavors Market Drivers

Expanding per capita incomes and swift urbanization is anticipated to boost market demand.

Owing to the eventful lifestyles of people convenience foods and RTD beverages have become a vital part of peoples’ lives as they extend the conveniences of eating on the hoof. Moreover, various vitamin and energy drinks fulfill the body's nutritional needs. In addition to that, swift urbanization where people are fleeing rural areas and shifting toward cities has its fair share in propelling the market growth as they are getting more information or exposure to the existence of various foods and beverages fabricated from floral flavors. According to a report, 56.61 percent population of the world in 2021 were residing in urban areas, the number is anticipated to reach 68 percent by the year 2050. Also, with growing GDP per capita incomes, people in developing countries have adopted decent lifestyles. With an increasing gross domestic product per capita income of over $12,000, China also declared itself free from extreme poverty by uplifting nearly 98.99 million out of impoverished conditions in 2021.

The growing trend of naturalness because of health concerns is expected to boost market demand.

Artificial flavorings are inextricable ingredients when it comes to confectionery, bakery, and other food items production. They are used extensively to extend a certain aroma and taste to food and drinks in order to tempt or draw consumers' attention. However, many studies have revealed that artificial flavoring is of carcinogenic nature which promotes cancer formation. Now as the world is already reeling under the massive surge in cancer incidence worldwide, the overall demand for artificial to natural is gaining popularity day after day. On another hand, growing cognitive disorders have propelled the market growth as floral flavors are deemed to possess therapeutic properties. Owing to busy lifestyles, sedentary habits, and depression the overall incidences of insomnia have augmented in recent years on an unprecedented scale. A report claimed that nearly 10 percent to 30 percent of the world population have insomnia.

Floral Flavors Market Challenges

Lessing organic content in the soil hampered production activities, and rising inflation is anticipated to hamper market growth.

Owing to widescale deforestation, overwhelming usage of pesticides and chemicals, and water pollution, the soil has started losing its richness and organic content which might pose a severe threat to the flower agriculture industry by reducing the yield drastically. On another hand, the gap created by hampered production activities has soared the prices of almost all commodities. Besides the COVID-19 outbreak, the ongoing conflict between Russia and Ukraine has subjected the crude oil prices to touch skies; Also, despite repeated request, the Organization of Petroleum Exporting Countries (OPEC) aren’t ready to increase the oil production to ease the price for because they have their own axe to grind. As a result, consumers across the globe battling staggering inflation which might hamper the steady growth of the aforementioned market. For instance, in the first month of 2022, the inflation rate in the US augmented to 7.5 percent which is the highest since 1982.

Floral Flavors Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Floral Flavors market top 10 companies include-

1. Sensient Technologies Corporation
2. BASF SE
3. Abelei Inc
4. Carbery group
5. Firmenich SA
6. Koninklijke DSM NV
7. Corbion NV
8. Symrise AG
9. International Flavors and Fragrances
10. Givaudan SA

Recent Developments

• On August 7, 2021, Amsterdam, Netherlands-based Corbion (a food and biochemical company famous for its bioingredient-based foods) announced the successful acquisition of Mexican bakery functional blend provider company Granolife. The transaction has expanded Corbion's business footprints in the Mexican market. 
• On July 15, 2021, in Wisconsin, United States-based Sensient Technologies (a firm known for flavor and fragrances manufacturing) announced the successful acquisition of several assets of New Jersey, United States-based food product supplier “Flavor Solutions.” The financials were kept hidden; moreover, the transaction has heightened the flavor portfolio of Sensient.
• On May 28, 2020, Geneva, Switzerland-based leading fragrance and flavor company “Firmenich SA” announced the successful acquisition of Dax, France-based chemical company Les Derives Resiniques Et Terpeniques SA, commonly known as “DRT.” The finances of the transaction were paid by the company by raising 750 million Euros by issuing hybrid notes.

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